[Alpha Biz= Paul Lee] Kolon Corp., the holding company of South Korea’s Kolon Group, announced on August 7 that it will convert its listed subsidiary, Kolon Mobility Group, into a wholly owned subsidiary through a comprehensive stock swap and subsequent delisting. The move aims to streamline decision-making processes and improve management efficiency.



In a board resolution passed the same day, Kolon Corp. stated it will execute the full acquisition of Kolon Mobility Group via a share exchange. As of the end of March, Kolon Corp. owned a 75.23% stake in Kolon Mobility Group.



Under the approved terms, the stock swap ratio has been set at 1 common share of Kolon Corp. to 0.0611643 common shares of Kolon Mobility Group, and 1 preferred share to 0.1808249 shares. Kolon Corp. noted that the ratio was determined in accordance with the Financial Investment Services and Capital Markets Act.



To protect retail investors, Kolon will launch a tender offer from August 8 to September 8. It plans to acquire up to 14,106,659 common shares at KRW 4,000 per share and up to 876,117 preferred shares at KRW 5,950 per share, investing a total of approximately KRW 61.64 billion. On the announcement day, shares closed at KRW 3,325 (+10.83%) for common stock and KRW 4,750 (+6.5%) for preferred stock. NH Investment & Securities is serving as the lead manager.



Kolon’s decision to make Kolon Mobility a wholly owned subsidiary is intended to facilitate faster strategic decision-making. Kolon Mobility Group is currently undertaking structural reforms to enhance operational efficiency in its imported car sales business. This includes shifting to a more system-oriented approach, optimizing its organization, and revamping its used car business model. The company recently exited its Jeep dealership operations and is exploring new business opportunities, including expanding its own brand offerings.

 

 

 

 

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